Set up a Representative Office in Luxembourg

Opening a liaison or representative office in Luxembourg is a great to test the market before expanding a business here. Discover below how to register such an office and how our local specialists can assist you.

Quick Facts
The purpose of a liaison office in Luxembourg	For: – business promotion, – business research activities, – business negotiation, etc.
What activities can you undertake with a liaison office in Luxembourg?	– marketing and promotion, – contract negotiation with local and/or foreign customers, – testing the local market, etc.
How can a representative office be registered in Luxembourg?	– presenting a copy of the Articles of Association of the foreign company, – offering information about future activities and name of the liaison officer in charge of the office representation
Can a liaison office in Luxembourg have commercial activities? (YES/NO)	NO
Contracting potential clients and partners (YES/NO)	YES
Local agent required (YES/NO)	YES
Attributes of a liaison officer	– contracting future clients and collaborators, – attending to business meetings, – promoting the business activities of the parent company, – negotiating business contracts, – research and reports
Bank account for a liaison office in Luxembourg	Necessary for different financial operations made by the liaison office in Luxembourg
Allowed to invoice local customers	Not allowed
The institution that authorizes the liaison office in Luxembourg	Trade Register in Luxembourg
The costs of opening a representative office in Luxembourg	Supported by the parent company
Travel requirements	Not required for opening a liaison office in Luxembourg
Business advertising through a liaison office in Luxembourg	A popular option for foreign companies interested in business in Luxembourg
Time frame for opening a liaison office in Luxembourg	A few days
Why choose our company formation agents in Luxembourg?	We offer: – assistance for registration with the relevant authorities in Luxembourg, – support in creating the solicited documents of a liaison office, – personalized offers, – affordable prices.

Who can set up a liaison office in Luxembourg?

The Luxembourg representative office is an entity available for foreign companies only.

What is the registration procedure for a liaison office in Luxembourg?

Opening a representative office in Luxembourg requires:

preparing a set of documents, which must usually be translated into French or German;
securing a local address;
appointing a local officer;
registering the office with the Companies Registrar.

What documents must a foreign company draft to open a Luxembourg representative office?

The following:

its Articles of Association;
a certified copy of the Incorporation Certificate issued by the foreign Trade Register;
a resolution approving the creation of the liaison office;
the details of the local officer.

You can also discover an infographic about liaison offices in luxembourg:

5_reasons_you_should_open_a_liaison_office_in_Luxembourg.jpg

What are the characteristics of a Luxembourg representative office?

It:

does not have a legal status;
cannot own assets in Luxembourg;
will incur no liabilities;
cannot carry out commercial activities;
does not have a distinct name for its parent company.

IMPORTANT: The foreign company will make the operational decisions in a Luxembourg representative office.

What are the activities to be carried out through a representative office in Luxembourg?

They are limited to:

representing the foreign company in the relation with Luxembourg business associates and/or clients;
promoting the activities of the foreign enterprise;
participating in fairs and events relevant to the parent company;
carrying out operations that enable the parent company to enter the Luxembourg market (feasibility studies, reports).

NOTE: A liaison office in Luxembourg is not allowed to conclude contracts in the name and for the account of the foreign company.

What are some areas where liaison offices in Luxembourg can be found?

Opening a liaison office in Luxembourg has a specific purpose, depending on the field in which it operates. Here are some examples:

import and export,
education,
health care,
government,
large organizations,
militaries,
external relations.

Can I hire employees in a Luxembourg representative office?

Yes, it is possible to hire employees in a Luxembourg liaison office.

We present you a video with some of the reasons why a liaison office in Luxembourg is a good option for you:

What are the advantages of setting up a liaison office in Luxembourg?

Unlike a branch or subsidiary, which requires registration with authorities, a liaison office is a much simpler alternative that allows a foreign legal entity to create on-site contacts in Luxembourg with stakeholders such as potential customers or suppliers.

The liaison office can help business development by ensuring communication, advertising and other public relations activities with partners and clients, undertakings that are hard to perform remotely.

Is a representative office subject to taxation in Luxembourg?

Having activities strictly for the promotion of the respective business, from a financial point of view it is supported by the foreign company. As such, a representative office in Luxembourg has no economic operations and therefore does not generate income or profits. Thus, it can be said that this entity is not subject to corporate tax in Luxembourg.

Also, a liaison office in Luxembourg does not have to make and submit VAT declarations because it does not issue invoices.

On the other hand, if you purchase goods and services in Luxembourg, you must pay VAT. We recommend those interested in the charging system for the liaison office in Luxembourg ask our local accountants for information.

How long does it take to open a liaison office in Luxembourg?

Approximately one month.

If you are interested in opening a company in Luxembourg or a liaison office, our local agents will provide the needed assistance. Contact us for more information.